The Importance of Diverse Perspectives Among Co-founders
Henry Ford, a notable figure in the automotive industry and a legendary entrepreneur, once reflected on the challenge of starting a business alongside close friends. He noted, “My best friend,” he said, “is the one who brings out the best in me.”
For me, that person is Jeremy Middleton, co-founder of HomeServe, with whom I established a solid rapport while working at Procter & Gamble. Despite our different backgrounds and skills, we shared a profound passion for entrepreneurship, which forged a lasting bond over the past thirty-three years. Our relationship has evolved to where we are now godfathers to each other’s daughters. Jeremy played a vital role during HomeServe’s formative years but later shifted his focus to personal projects.
I greatly appreciate his support during that time—he challenged my perspectives, provided candid feedback, and kept me grounded as we monitored our progress. His quality of honesty is crucial in a co-founder; entrepreneurship can be a lonely journey, often steeped in uncertainty about future prospects. Partnering with someone who has a different viewpoint and a complementary skill set creates a powerful dynamic, emphasizing the importance of having someone who will give you genuine feedback rather than just praise.
Many businesses falter when co-founders share too many similarities. The most fruitful collaborations often consist of a mix of diverse skills and responsibilities tailored to each partner’s strengths. This diversity can make a company more appealing to investors, who value a wide range of expertise at the leadership level.
Sometimes, co-foundership stems from prior collaborations. For example, I recently spoke with Rishi Khosla, CEO of OakNorth, a digital bank that helps high-growth enterprises access flexible financial solutions. The company recorded nearly £200 million in pre-tax profits last year and marks the second successful venture between him and his co-founder, Joel Perlman. Their intuitive understanding of one another is evident.
Tensions can threaten both relationships and business success, making productive collaboration and constructive disagreements essential. Disagreements can often be the catalysts for innovation; if partners are too aligned in their thinking, it could prevent necessary growth and exploration of new ideas. Disagreement serves as a healthy form of challenge, indicating a strong desire to improve and evolve.
The co-founder relationship is one of the most significant connections you’ll forge throughout your career. It’s vital to nurture it actively, practicing openness and humility, while fostering genuine collaboration and empathetic listening.
Setting aside time each week to discuss issues, updates, and new ideas can strengthen the bond that brought you together. It’s essential to safeguard this connection to prevent it from weakening over time.
Disagreements within any organization should not be viewed as detrimental. Instead, handle them with care and progress swiftly to maintain team morale and prevent stagnation.
However, it’s also crucial to recognize that not all partnerships endure. Take the case of friends Ben Francis and Lewis Morgan, who co-founded Gymshark but parted ways in 2016. The company was already generating £13 million in revenue at the time of their split, and Morgan later sold his shares for approximately £100 million. Francis has since driven the company’s growth, with revenues exceeding £550 million last year, illustrating that separation can sometimes enhance a brand’s strength.
Every partnership has a timeline. I have witnessed businesses stall when co-founders avoid recognizing their divergence, leading to unresolved tensions and reduced growth.
Recently, I consulted with two founders grappling with similar issues as they sought advice on company growth. Ultimately, they yearned for strategies to navigate amicable separations from their co-founders.
My initial recommendation was to seek out a peer group of executives and founders to share experiences and gain insights. Wise entrepreneurs understand the value of learning from others, recognizing that they don’t have all the answers and are open to seeking guidance.
Additionally, consider bringing in an independent business advisor to assist with this transition. Use the opportunity of an impending split to attract an investor who can fund the buyout of the co-founder while also supporting the business’s next growth phase. Aim to source a minority investor, allowing you to retain control.
Finally, assess the skills you’ll be losing and plan to replace them effectively—whether by reorganizing your current workforce or hiring a senior leader to fill the void left by the departing co-founder.
This leader could be an experienced chief executive, allowing the remaining founder to focus on their core competencies, such as product design or sourcing. Contrary to the belief that emotional detachment breeds business success, relationships are undeniably vital. You cannot build or expand a business without genuine emotional engagement.
Although separating from a co-founder can be a significant challenge, particularly when they are close friends or family, it often proves to be the best course of action for the business.
Richard Harpin is the founder and chairman of HomeServe and a business leader.
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